Condensed Consolidating Schedules (Tables)

3 Months Ended

Mar. 29, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Balance Sheet

CEC Entertainment, Inc.
Condensed Consolidating Balance Sheet
As of March 29, 2015
(in thousands)
	Successor
	Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Current assets:
Cash and cash equivalents	$	132,930		$	10,280		$	8,414		$	—		$	151,624
Accounts receivable	12,010			1,718			4,002			(3,222		)	14,508
Inventories	13,342			5,864			332			—			19,538
Other current assets	17,357			3,358			1,638			—			22,353
Total current assets	175,639			21,220			14,386			(3,222		)	208,023
Property and equipment, net	624,306			33,619			9,972			—			667,897
Goodwill	432,462			51,521			—			—			483,983
Intangible assets, net	23,988			467,223			—			—			491,211
Intercompany	129,525			23,662			—			(153,187		)	—
Investment in subsidiaries	420,089			—			—			(420,089		)	—
Other noncurrent assets	26,755			6,162			46			—			32,963
Total assets	$	1,832,764		$	603,407		$	24,404		$	(576,498	)	$	1,884,077
Current liabilities:
Bank indebtedness and other long-term debt, current portion	$	9,500		$	45		$	—		$	—		$	9,545
Capital lease obligations, current portion	402			—			3			—			405
Accounts payable and accrued expenses	94,962			25,672			4,378			—			125,012
Other current liabilities	2,989			—			—			—			2,989
Total current liabilities	107,853			25,717			4,381			—			137,951
Capital lease obligations, less current portion	15,297			—			74			—			15,371
Bank indebtedness and other long-term debt, less current portion	996,608			57			—			—			996,665
Deferred tax liability	193,540			15,727			656			—			209,923
Intercompany	3,845			129,945			22,619			(156,409		)	—
Other noncurrent liabilities	209,540			8,357			189			—			218,086
Total liabilities	1,526,683			179,803			27,919			(156,409		)	1,577,996
Stockholders' equity:
Common stock	—			—			—			—			—
Capital in excess of par value	355,982			466,114			3,241			(469,355		)	355,982
Retained earnings (deficit)	(47,346		)	(42,510		)	(4,201		)	46,711			(47,346		)
Accumulated other comprehensive income (loss)	(2,555		)	—			(2,555		)	2,555			(2,555		)
Total stockholders' equity	306,081			423,604			(3,515		)	(420,089		)	306,081
Total liabilities and stockholders' equity	$	1,832,764		$	603,407		$	24,404		$	(576,498	)	$	1,884,077

CEC Entertainment, Inc.
Condensed Consolidating Balance Sheet
As of December 28, 2014
(in thousands)
	Successor
	Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Current assets:
Cash and cash equivalents	$	97,020		$	6,427		$	7,547		$	—		$	110,994
Accounts receivable	13,209			5,487			3,797			(3,658		)	18,835
Inventories	15,008			3,596			375			—			18,979
Other current assets	19,086			3,711			2,040			—			24,837
Total current assets	144,323			19,221			13,759			(3,658		)	173,645
Property and equipment, net	638,239			33,064			10,669			—			681,972
Goodwill	432,462			50,982			—			—			483,444
Intangible assets, net	24,649			466,751			—			—			491,400
Intercompany	129,429			25,090			32,655			(187,174		)	—
Investment in subsidiaries	428,836			—			—			(428,836		)	—
Other noncurrent assets	27,770			5,875			37			—			33,682
Total assets	$	1,825,708		$	600,983		$	57,120		$	(619,668	)	$	1,864,143
Current liabilities:
Bank indebtedness and other long-term debt, current portion	$	9,500		$	45		$	—		$	—		$	9,545
Capital lease obligations, current portion	405			—			3			—			408
Accounts payable and accrued expenses	82,995			21,989			(248		)	(484		)	104,252
Other current liabilities	2,990			—			—			—			2,990
Total current liabilities	95,890			22,034			(245		)	(484		)	117,195
Capital lease obligations, less current portion	15,395			—			81			—			15,476
Bank indebtedness and other long-term debt	998,374			67			—			—			998,441
Deferred tax liability	207,258			14,877			780			—			222,915
Intercompany	6,309			126,497			57,542			(190,348		)	—
Other noncurrent liabilities	209,896			7,472			162			—			217,530
Total liabilities	1,533,122			170,947			58,320			(190,832		)	1,571,557
Stockholders' equity:
Common stock	—			—			—			—			—
Capital in excess of par value	355,587			465,451			3,089			(468,540		)	355,587
Retained earnings (deficit)	(62,088		)	(35,415		)	(3,376		)	38,791			(62,088		)
Accumulated other comprehensive income (loss)	(913		)	—			(913		)	913			(913		)
Total stockholders' equity	292,586			430,036			(1,200		)	(428,836		)	292,586
Total liabilities and stockholders' equity	$	1,825,708		$	600,983		$	57,120		$	(619,668	)	$	1,864,143

Condensed Consolidating Income Statement

CEC Entertainment, Inc.
Consolidating Statement of Comprehensive Income (Loss)
For the Three Months Ended June 28, 2015
(in thousands)
	Successor
	Issuer	Guarantors	Non-Guarantors	Eliminations	Consolidated
Revenues:
Food and beverage sales					$	—
Entertainment and merchandise sales					—
Total company store sales	—	—	—	—	—
Franchise fees and royalties					—
International Association assessments and other fees					—
Total revenues	—	—	—	—	—
Operating Costs and Expenses:
Company store operating costs:
Cost of food and beverage					—
Cost of entertainment and merchandise					—
Total cost of food, beverage, entertainment and merchandise	—	—	—	—	—
Labor expenses					—
Depreciation and amortization					—
Rent expense					—
Other store operating expenses					—
Total company store operating costs	—	—	—	—	—
Advertising expense					—
General and administrative expenses					—
Transaction and severance costs					—
Total operating costs and expenses	—	—	—	—	—
Operating income (loss)	—	—	—	—	—
Equity in earnings (loss) in affiliates	—	—	—	—	—
Interest expense (income)					—
Income (loss) before income taxes	—	—	—	—	—
Income tax expense (benefit)					—
Net income (loss)	—	—	—	—	—
Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments					$	—
Total components of other comprehensive income (loss), net of tax	—	—	—	—	—
Comprehensive income (loss)	—	—	—	—	—

CEC Entertainment, Inc.
Consolidating Statement of Comprehensive Income (Loss)
For the Three Months Ended June 29, 2014
(in thousands)
	Predecessor
	Issuer	Guarantors	Non-Guarantors	Eliminations	Consolidated
Revenues:
Food and beverage sales					$	—
Entertainment and merchandise sales					—
Total company store sales	—	—	—	—	—
Franchise fees and royalties					—
International Association assessments and other fees					—
Total revenues	—	—	—	—	—
Operating Costs and Expenses:
Company store operating costs:
Cost of food and beverage					—
Cost of entertainment and merchandise					—
Total cost of food, beverage, entertainment and merchandise	—	—	—	—	—
Labor expenses					—
Depreciation and amortization					—
Rent expense					—
Other store operating expenses					—
Total company store operating costs	—	—	—	—	—
Advertising expense					—
General and administrative expenses					—
Asset impairment					—
Total operating costs and expenses	—	—	—	—	—
Operating income (loss)	—	—	—	—	—
Equity in earnings (loss) in affiliates				—	—
Interest expense (income)					—
Income (loss) before income taxes	—	—	—	—	—
Income tax expense (benefit)					—
Net income (loss)	—	—	—	—	—
Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments					$	—
Total components of other comprehensive income (loss), net of tax	—	—	—	—	—
Comprehensive income (loss)	—	—	—	—	—

CEC Entertainment, Inc.
Consolidating Statement of Comprehensive Income (Loss)
For the Three Months Ended March 29, 2015
(in thousands)
	Successor
	Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Revenues:
Food and beverage sales	$	102,387		$	12,316		$	1,834		$	—		$	116,537
Entertainment and merchandise sales	137,510			4,110			3,124			—			144,744
Total company store sales	239,897			16,426			4,958			—			261,281
Franchise fees and royalties	805			3,422			—			—			4,227
International Association assessments and other fees	286			662			8,653			(9,601		)	—
Total revenues	240,988			20,510			13,611			(9,601		)	265,508
Operating Costs and Expenses:
Company store operating costs:
Cost of food and beverage	25,390			3,244			591			—			29,225
Cost of entertainment and merchandise	7,620			753			149			—			8,522
Total cost of food, beverage, entertainment and merchandise	33,010			3,997			740			—			37,747
Labor expenses	61,732			3,930			1,511			—			67,173
Depreciation and amortization	27,619			1,114			508			—			29,241
Rent expense	22,303			1,494			661			—			24,458
Other store operating expenses	31,509			1,830			1,128			(948		)	33,519
Total company store operating costs	176,173			12,365			4,548			(948		)	192,138
Advertising expense	9,141			1,060			9,904			(8,653		)	11,452
General and administrative expenses	4,893			12,180			117			—			17,190
Transaction and severance costs	—			41			—			—			41
Total operating costs and expenses	190,207			25,646			14,569			(9,601		)	220,821
Operating income (loss)	50,781			(5,136		)	(958		)	—			44,687
Equity in earnings (loss) in affiliates	(7,769		)	—			—			7,769			—
Interest expense (income)	16,737			633			129			—			17,499
Income (loss) before income taxes	26,275			(5,769		)	(1,087		)	7,769			27,188
Income tax expense (benefit)	11,533			1,328			(415		)	—			12,446
Net income (loss)	$	14,742		$	(7,097	)	$	(672	)	$	7,769		$	14,742
Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	$	(1,642	)	$	—		$	(1,642	)	$	1,642		$	(1,642	)
Total components of other comprehensive income (loss), net of tax	(1,642		)	—			(1,642		)	1,642			(1,642		)
Comprehensive income (loss)	$	13,100		$	(7,097	)	$	(2,314	)	$	9,411		$	13,100

CEC Entertainment, Inc.
Consolidating Statement of Comprehensive Income (Loss)
For the 44 Day Period Ended March 30, 2014
(in thousands)
	Successor
	Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Revenues:
Food and beverage sales	$	60,896		$	55		$	1,326		$	—		$	62,277
Entertainment and merchandise sales	76,538			—			2,075			—			78,613
Total company store sales	137,434			55			3,401			—			140,890
Franchise fees and royalties	335			351			—			—			686
International Association assessments and other fees	294			4,336			7,483			(12,113		)	—
Total revenues	138,063			4,742			10,884			(12,113		)	141,576
Operating Costs and Expenses:
Company store operating costs:
Cost of food and beverage	15,347			(16		)	366			—			15,697
Cost of entertainment and merchandise	4,733			(7		)	124			(20		)	4,830
Total cost of food, beverage, entertainment and merchandise	20,080			(23		)	490			(20		)	20,527
Labor expenses	31,061			—			887			—			31,948
Depreciation and amortization	18,118			—			357			—			18,475
Rent expense	7,456			—			254			—			7,710
Other store operating expenses	20,184			3			537			(4,085		)	16,639
Total company store operating costs	96,899			(20		)	2,525			(4,105		)	95,299
Advertising expense	7,579			(17		)	5,041			(7,466		)	5,137
General and administrative expenses	3,132			4,059			179			(542		)	6,828
Transaction and severance costs	31,679			6,000			—			—			37,679
Total operating costs and expenses	139,289			10,022			7,745			(12,113		)	144,943
Operating income (loss)	(1,226		)	(5,280		)	3,139			—			(3,367		)
Equity in earnings (loss) in affiliates	1,483			—			—			(1,483		)	—
Interest expense (income)	8,614			3,342			87			—			12,043
Income (loss) before income taxes	(8,357		)	(8,622		)	3,052			(1,483		)	(15,410		)
Income tax expense (benefit)	5,515			(7,961		)	908			—			(1,538		)
Net income (loss)	$	(13,872	)	$	(661	)	$	2,144		$	(1,483	)	$	(13,872	)
Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	$	(112	)	$	—		$	(112	)	$	112		$	(112	)
Total components of other comprehensive income (loss), net of tax	(112		)	—			(112		)	112			(112		)
Comprehensive income (loss)	$	(13,984	)	$	(661	)	$	2,032		$	(1,371	)	$	(13,984	)

CEC Entertainment, Inc.
Consolidating Statement of Comprehensive Income (Loss)
For the 47 Day Period Ended February 14, 2014
(in thousands)
	Predecessor
	Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Revenues:
Food and beverage sales	$	49,803		$	32		$	1,062		$	—		$	50,897
Entertainment and merchandise sales	61,082			—			1,577			—			62,659
Total company store sales	110,885			32			2,639			—			113,556
Franchise fees and royalties	353			334			—			—			687
International Association assessments and other fees	—			4,558			6,095			(10,653		)	—
Total revenues	111,238			4,924			8,734			(10,653		)	114,243
Operating Costs and Expenses:
Company store operating costs:
Cost of food and beverage	11,924			25			336			—			12,285
Cost of entertainment and merchandise	3,618			—			131			(20		)	3,729
Total cost of food, beverage, entertainment and merchandise	15,542			25			467			(20		)	16,014
Labor expenses	31,107			—			891			—			31,998
Depreciation and amortization	9,430			—			303			—			9,733
Rent expense	11,962			—			403			—			12,365
Other store operating expenses	20,193			(44		)	(82		)	(4,307		)	15,760
Total company store operating costs	88,234			(19		)	1,982			(4,327		)	85,870
Advertising expense	6,144			17			5,853			(6,111		)	5,903
General and administrative expenses	4,124			3,863			191			(215		)	7,963
Transaction and severance costs	1,800			9,834			—			—			11,634
Total operating costs and expenses	100,302			13,695			8,026			(10,653		)	111,370
Operating income (loss)	10,936			(8,771		)	708			—			2,873
Equity in earnings (loss) in affiliates	(4,523		)	—			—			4,523			—
Interest expense (income)	1,822			(771		)	100			—			1,151
Income (loss) before income taxes	4,591			(8,000		)	608			4,523			1,722
Income tax expense (benefit)	3,887			(3,040		)	171			—			1,018
Net income (loss)	$	704		$	(4,960	)	$	437		$	4,523		$	704
Components of other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	$	(541	)	$	—		$	(541	)	$	541		$	(541	)
Total components of other comprehensive income (loss), net of tax	(541		)	—			(541		)	541			(541		)
Comprehensive income (loss)	$	163		$	(4,960	)	$	(104	)	$	5,064		$	163

Condensed Consolidating Cash Flow Statement

CEC Entertainment, Inc.
Consolidating Statement of Cash Flows
For the Three Months Ended March 29, 2015
(in thousands)
	Successor
	Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Cash flows provided by (used in) operating activities:	$	53,409		$	2,476		$	4,663		$	—		$	60,548
Cash flows from investing activities:
Acquisition of Peter Piper Pizza	(663		)	—			—			—			(663		)
Intercompany note	(96		)	2,500			—			(2,404		)	—
Purchases of property and equipment	(14,451		)	(1,023		)	(635		)	—			(16,109		)
Proceeds from sale of property and equipment	97			—			—			—			97
Development of internal use software	—			(185		)	—			—			(185		)
Cash flows provided by (used in) investing activities	(15,113		)	1,292			(635		)	(2,404		)	(16,860		)
Cash flows from financing activities:
Repayments on senior term loan	(1,900		)	—			—			—			(1,900		)
Repayments on note payable	—			(11		)	—			—			(11		)
Intercompany note	—			96			(2,500		)	2,404			—
Payments on capital lease obligations	(100		)	—			—			—			(100		)
Payments on sale leaseback transactions	(386		)	—			—			—			(386		)
Cash flows provided by (used in) financing activities	(2,386		)	85			(2,500		)	2,404			(2,397		)
Effect of foreign exchange rate changes on cash	—			—			(661		)	—			(661		)
Change in cash and cash equivalents	35,910			3,853			867			—			40,630
Cash and cash equivalents at beginning of period	97,020			6,427			7,547			—			110,994
Cash and cash equivalents at end of period	$	132,930		$	10,280		$	8,414		$	—		$	151,624

CEC Entertainment, Inc.
Consolidating Statement of Cash Flows
For the 44 Day Period Ended March 30, 2014
(in thousands)
	Successor
	Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Cash flows provided by (used in) operating activities:	$	17,463		$	723		$	(202	)	$	—		$	17,984
Cash flows from investing activities:
Acquisition of Predecessor	(946,898		)	—			—			—			(946,898		)
Intercompany note	—			348,969			—			(348,969		)	—
Purchases of property and equipment	(4,683		)	(1,762		)	(56		)	—			(6,501		)
Proceeds from sale of property and equipment	—			98			—			—			98
Cash flows provided by (used in) investing activities	(951,581		)	347,305			(56		)	(348,969		)	(953,301		)
Cash flows from financing activities:
Proceeds from secured credit facilities, net of original issue discount	756,200			—			—			—			756,200
Proceeds from senior notes	255,000			—			—			—			255,000
Repayment of Predecessor Facility	—			(348,000		)	—			—			(348,000		)
Intercompany note	(346,628		)	384			(2,725		)	348,969			—
Payment of debt financing costs	(27,575		)	—			—			—			(27,575		)
Payments on capital lease obligations	(26		)	—			—			—			(26		)
Dividends paid	(890		)	—			—			—			(890		)
Excess tax benefit realized from stock-based compensation	5,043			—			—			—			5,043
Equity contribution	350,000			—			—			—			350,000
Cash flows provided by (used in) financing activities	991,124			(347,616		)	(2,725		)	348,969			989,752
Effect of foreign exchange rate changes on cash	—			—			(59		)	—			(59		)
Change in cash and cash equivalents	57,006			412			(3,042		)	—			54,376
Cash and cash equivalents at beginning of period	6,653			120			12,411			—			19,184
Cash and cash equivalents at end of period	$	63,659		$	532		$	9,369		$	—		$	73,560

CEC Entertainment, Inc.
Consolidating Statement of Cash Flows
For the 47 Day Period Ended February 14, 2014
(in thousands)
	Predecessor
	Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Cash flows provided by (used in) operating activities:	$	(12,224	)	$	29,906		$	4,632		$	—		$	22,314
Cash flows from investing activities:
Intercompany note	—			(17,601		)	—			17,601			—
Purchases of property and equipment	(8,538		)	(1,082		)	(90		)	—			(9,710		)
Proceeds from sale of property and equipment	(2		)	53			—			—			51
Cash flows provided by (used in) investing activities	(8,540		)	(18,630		)	(90		)	17,601			(9,659		)
Cash flows from financing activities:
Net proceeds from (repayments on) revolving credit facility	—			(13,500		)	—			—			(13,500		)
Intercompany note	17,571			430			(400		)	(17,601		)	—
Payments on capital lease obligations	(153		)	—			(11		)	—			(164		)
Dividends paid	(38		)	—			—			—			(38		)
Restricted stock returned for payment of taxes	(142		)	—			—			—			(142		)
Cash flows provided by (used in) financing activities	17,238			(13,070		)	(411		)	(17,601		)	(13,844		)
Effect of foreign exchange rate changes on cash	—			—			(313		)	—			(313		)
Change in cash and cash equivalents	(3,526		)	(1,794		)	3,818			—			(1,502		)
Cash and cash equivalents at beginning of period	10,177			1,914			8,595			—			20,686
Cash and cash equivalents at end of period	$	6,651		$	120		$	12,413		$	—		$	19,184